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Former Comvita boss to head SeaDragon

NZ Newswire 17/07/2016Sophie Boot

Nelson-based fish oil refiner SeaDragon has appointed a former Comvita man as its new chief executive.

Nevin Amos will take over from interim chief executive Richard Alderton in October, the company says.

He is currently chief executive at Pacific T&R and before that worked at health product company Comvita, a cornerstone shareholder in SeaDragon, for nearly a decade.

"Nevin's strong links to Comvita will also assist SeaDragon to make the most of the strategic alliance we have formed with our cornerstone investor to add value to New Zealand fish and aquaculture products," chairman Colin Groves said.

He had an awareness of SeaDragon's target markets and an in-depth understanding of supply chain systems and processes, he said.

Comvita held 13.1 per cent of SeaDragon as of July 1 and has options that could lift that holding to between 25 per cent and 31 per cent.

SeaDragon shareholders will vote on whether to approve a proposed $3 million convertible loan from Comvita at their annual meeting in August, which would effectively lift the honey healthcare products maker's interest to between 31 per cent and 37 per cent.

Last month, the company's auditors warned it may not have sufficient cash reserves to meet its obligations if it fails to achieve its forecast cash flow.

The announcement was made as SeaDragon reported its net loss had almost doubled to $5.5 million in the year to March, with sales falling to $5.6m from $6.2m.

The shares last traded at 1.2 cents and have dropped 21 per cent this year.